green human resource management: implication …

International Journal of Economics, Management and Accounting 29, no. 1 (2021): 207-221

© 2021 by The International Islamic University Malaysia

GREEN HUMAN RESOURCE MANAGEMENT:

IMPLICATION TOWARD ENVIRONMENTAL

PERFORMANCE IN DEVELOPING COUNTRIES

Muliati Usmana and Norsiah Matb

aDepartment of Management, Faculty of Economics and Business,

Syiah Kuala University, Darussalam, Banda Aceh, Indonesia.

(Email: [email protected])

bDepartment of Human Resource Management, College of Business,

Universiti Utara Malaysia, Kedah Darul Aman, Malaysia. (Email:

[email protected])

ABSTRACT

The objective of this study is to explore the influence of green Human

Resource Management (HRM) on environmental performance by using a

narrative literature review. This study promotes practice of green HRM as a

critical approach in determining the success of environmental performance.

However, there is limited study investigating the relationship between

green HRM and environmental performance in the context of developing

countries. Besides, there is somewhat mixed results regarding important or

essential elements of green HRM. This study considers that identifying

essential components or elements of green HRM practices is very important

to accelerate environmental performance. Studies of green HRM provide

convincing evidence on the significant effect of green HRM in enhancing

environmental performance. Practice of green HRM can improve

environmental performance. This study contributes to extending literature

on the relationship of green HRM toward environmental performance in

developing countries by developing essential elements or key factors of

green HRM practices for the success of environmental performance: green

recruitment and green selection, green training, green performance, and

green reward.

JEL Classification: M14, M54

Key words: Green human resource management, Practice of green HRM,

Environmental performance

208 International Journal of Economics, Management and Accounting 29, no. 1 (2021)

1. INTRODUCTION

Preservation and protection of the natural environment have become

a global concern and crucial issue in the last few decades that

stimulate application of environmentally responsible organizational

management (Ouyang et al., 2019; Singjai, Winata and Kummer,

2018; Melnyk, Sroufe and Calantone, 2003). Current phenomenon

shows that it is increasingly important for an organization to enhance

environmental awareness. Organizations are facing pressure to be

greener and consumers expect them to reduce natural energy

consumption and also reduce the negative impact on society and the

natural environment (Yusliza, Othman and Jabbour, 2017; Chen,

2011; Chiou et al., 2011). In other words, becoming greener will lead

organization to high commitment to the natural environment by

establishing environmentally friendly activities. It is possible for the

organization to have a better environmental reputation by applying

environmental performance (Konar and Cohen, 2001). In practice,

organizations may expect some benefit from environmental

performance. This concept is not only to fulfill responsibility to

society and the environment, yet absolutely needed for

organizational sustainability. Most companies such as those in

industry have made efforts to eliminate waste from the production

and disposal of products so that these efforts improve their

environmental performance (Melynk et al., 2003). As a result,

improving environmental performance is key to organizational social

responsibility (Al-Minhas, Ndubisi and Barrane, 2020) and also

organizational sustainability (Aragón-Correa and Sharma, 2003).

In addressing environmental performance issues, promoting

green organization is an approach for sustainable human resource

management (HRM) that confirmed sustainable development of

organization can be achieved by adopting new ecological techniques

by using the human capital of an organization and innovative

strategies (Chams and García-Blandón, 2019). Implementing green

HRM can ensure the success of environmental performance of

organization that has an important role in developing organizational

sustainability (Pham et al., 2020). The existence of manufacturing

and business certainly harms the environment; it arises from the non-

green human behavior toward environmental degeneration. Thus,

values, beliefs, attitudes, and behavior of humans as a resource for

sustainable development objectives of organization become a serious

question. Green HRM is a crucial approach of organization because

human resource plays a key role in the success of organization

Green Human Resource Management:Implication Toward Environmental …….. 209

implementing “green” (Hameed et al., 2020). Thus, green HRM can

make businesses more sustainable. Organizations can reduce

environmental impacts to respond to environmental degradation by

implementing green initiatives through human resources (Yong,

Yusliza and Fawehinmi, 2019; Chams and García-Blandón, 2019;

Renwick, Redman, and Maguire, 2013).

Green HRM and environment attracted much attention from

scholars and practitioners around the world in recent years (Yong et

al., 2019). Some findings (e.g. Khan, Saufi, and Rasli, 2019; Yusliza

et al., 2017; Harvey, Williams and Probert, 2013; Daily, Bishop, and

Steiner, 2007) identified green HRM working directly to reduce

environmental degeneration to boost environmental performance.

Current literature on environmental performance appreciates efforts

to achieve environmental sustainability objectives and suggests

organizations to apply appropriate HRM practices. To attain this

objective, great efforts have been made to identify what drives

employees to participate in pro-environment behavior in helping

organizations become greener (Paillé et al., 2013). Hence, research

on green HRM has been a current research trend (Chams and García-

Blandón, 2019; Yusoff et al., 2018).

Indeed, human factors and environmental factors are closely

linked. The relationship between these factors is related to human

resources and environmental conservation. This concept requires a

holistic concept and approach. It is necessary to research the

relationship and interaction of human resources and environment to

understand implementation of these factors (Al-Minhas et al., 2020).

Specifically, there is still lack of study investigating research impact

of green HRM on environmental performance in developing

countries as these countries have a unique situation (Mousa and

Othman, 2020). According to Khan et al. (2019), scenario of green

HRM in developing countries is facing the issue of poor

environmental laws and compliance. Further research is needed as

environmental strategies applied in developing countries might differ

from those in developed countries (Singjai et al., 2018). Furthermore, findings regarding the importance of various

aspects of green HRM and how they affect business sustainability are

somewhat mixed (Al-Minhas et al., 2020). There is still uncertainty

related to how organizations can effectively identify which practice

of green HRM are needed to enhance environmental performance

Thus, the impact of human resource policies to promote performance

for environment is still unclear (Siyambalapitiya, Zhang and Liu,

2018). Identifying green HRM practices is very important to


accelerate the contribution of environmental performance (Yusoff et

al., 2018). Extensive research is needed to understand how green

HRM practices support improved environmental performance (Kim

et al., 2019; Leidner, Baden, and Ashleigh, 2019; Siyambalapitiya et

al., 2018). Main debate in the literature focuses on practice of green

HRM and the necessity to build a clear conceptualization for

environmental performance (Cham and García-Blandón, 2019).

Therefore, this study intends to explore the impact of green HRM on

environmental performance by exploring how the concept and

approach of green HRM practice influence environmental

performance of organizations in developing countries. It also

identifies essential components of practice of green HRM by

adopting a narrative literature review.

2. CONCEPTUALIZATION OF GREEN HUMAN RESOURCE

MANAGEMENT

Green human resource management (GHRM) refers to the

incorporation of elements of green management toward job design,

staffing, training and development, motivation, and also maintenance

functions of human resources to increase employee pro-environment

behavior, meet employee expectations and achieve organizational

objectives (Shah, 2019). Green HRM concerns people as a human

resource and environmental management goals of the organization

(Jabbour and Renwick, 2018). It is crucial to focus on improving

availability of green human capital as an organizational resource

(Bag and Gupta, 2019). Thus, organizations must accommodate

explicit structures in order to manage resources using appropriate

tools and processes that can avoid undesired outcomes that will

endanger the environment and also carry out monitoring systems to

evaluate organizational sustainability practices (Chams and García-

Blandón, 2019).

Experts suggested that the concept of strategic HRM can be

applied to corporate social responsibility (CSR) and environmental

conservation (Kim et al., 2019). As mentioned by Wagner (2013),

when looking at the important elements of green HRM, it can be

defined that green HRM is part of sustainable HRM related to

environmental sustainability. Therefore, green HRM is a subset of

sustainable human resource management that also handles corporate

social responsibility issues. Organization policies in green HRM are

needed to encourage individual participation to instill corporate

social responsibility in organizations. Thus, it is very important to


use green HRM policy to utilize employee experience of corporate

social responsibility (Leidner et al., 2019). Organizations must

empower employees to support green HRM practices so that they

will provide commitment, feedback, and contribution to

environmental issues by prioritizing environmental aspects in every

job (Yusliza et al., 2017).

3. PRACTICE OF GREEN HUMAN RESOURCE

MANAGEMENT

Green HRM research is gaining intensified attention. However, focus

areas for determining essential aspects or components of green HRM

practice vary greatly. As stated by Al-Minhas et al. (2020), the

findings of the literature on various aspects of green HRM were

somewhat mixed. Therefore, developing a holistic concept toward

the body of green HRM becomes very important. At present,

literature is lacking that discusses and analyzes the body of Green

HRM (Yong et al., 2019). Specifically, this study attempts to identify

the body of green HRM by referring to the literature or findings in

some developing countries such as Malaysia, Thailand, Sri Lanka,

Vietnam, Pakistan, and Palestine.

Yusliza et al. (2017) showed evidence that green HRM can

be practiced by adopting green analysis and description of job

position, green performance assessment, green recruitment, green

rewards, green selection, and green training. Cheema and Javed

(2017) found that three components or aspects of green HRM

practice are selection and recruitment, rewards and pay system, and

performance and appraisal, while Yusoff et al. (2018) revealed that

green HRM is the implementation of policies, philosophies, and

practices of green recruitment and selection, green training and

development, green performance appraisal, and green compensation.

Further, a study by Zaid, Jaaron, and Bon (2018) confirmed that

green HRM bundle is a set of human resource practices focusing on

performance through green hiring, green training, and involvement

and green performance management and compensation.

Siyambalapitiya et al. (2018) described green HRM as a function of

green recruitment, green selection, green training and development,

green compensation and rewards, green performance evaluation,

green relations and collective bargaining, and green grievance

handling.

Current study by Mousa and Othman (2020) showed that

practice of green HRM can be applied by involving green hiring,


green training and involvement, and green performance management

and compensation. At the same time, Anwar et al. (2020) found

evidence that green HRM can be practiced by using green

competence building practices, green motivation enhancing practices

and green employee involvement practice. Study by Hameed et al.

(2020) clarified that the component of practice of green HRM

included development of employee’s green ability by training,

employee motivation to green performance management, and

providing green opportunity by employee involvement. Moreover,

Pham et al. (2020) exhibited that training and employee involvement

are the most important tools in stimulating employee commitment to

environmental performance.

Drawing on findings of these different studies, this study

considers practice of green HRM in developing countries presents a

major sub-set in environmental activities i.e. green recruitment and

green selection, green training, green performance, and green reward.

Green Recruitment and Green Selection: it will be obtained by

selecting employees who have social responsibility or work not only

to increase profits. Green Training: this practice can be applied

through environmental learning efforts and developing knowledge,

skills, and competencies promoting environmentally social attitudes

and eco-friendly behavior and attitude. Green Performance: where

employees are appraised and rewarded through their ethical stand or

involvement and participation in organizational civic activities

(Chams and García-Blandón, 2019). Indeed, practice of GHRM

results in significant effect on organizations. According to Jabbour

and Renwick (2018), practice of green human resource is important

to promote development of greener product, support responses of

corporations to climate change, help organizations in implementing

and establishing environment management systems, motivate green

leaders in inspiring employees to maintain and achieve new

sustainability and eco-innovation, besides improving the

organization’s environmental performance. Green Reward:

organizations developing reward systems are to provide incentives

for environmental management. Therefore, organizations must focus

on reward practices that have a significant effect on employee

willingness to produce eco-initiatives (Renwick et al., 2013).

In terms of green recruitment and selection, pro-environment

organizations also recruit employees who are willing to be involved

in environmental management activities. Thus, green agenda has an

impact on the criteria for hiring new employees (Renwick et al.,

2013). Organizations will be able to strengthen green initiatives by


attracting and selecting employees who already care about the

environment rather than turning existing employees into those who

care about it (Siyambalapitiya et al., 2018). To verify the green

competition of the individual, the recruiter can ask questions about

environmental issues with the aim of exploring the green

competencies of candidates (Pham and Paillé, 2019). Results of

assessment process and also the evaluation will provide an

environmental signal that will guide selection decisions. This process

identifies a personal attribute of candidate to environmental

competence. Recruiters can also determine a candidate’s level of

awareness of environmental problems in society and provide an

overview of environmental behavior that is in line with job

descriptions (Adjei-Bamfo et al., 2019).

Specifically, green training presents knowledge management

which is certainly helpful for environmental knowledge with

environmental behavior that is providing the ability to solve

environmental problems (Anwar et al., 2020). Organizations that

promote new and real green management practices regularly conduct

environmental management training. Developing a pro-

environmental workplace needs an integrated training program

related to performance evaluation and management (Shah, 2019).

Providing training on environmental issues helps in implementing

environmental management policies in the organization. Training

will help develop sensitivity and reorientation of management and

human resource managers to show environmentally responsible

behavior (Adjei-Bamfo et al., 2019). In staff development for

environment management it is evident that widespread use of

training in environmental management is an effort considered

appropriate for developing an environmental knowledge base and to

nurture environmentally conscious managers and leaders of the

future (Renwick et al., 2013).

Further, green performance focuses on topics such as

incidents in the environment, use of environmental responsibility,

and communication of environmental problems and policies

(Renwick et al., 2013). Through performance appraisals based on the

environment, employees will get a performance evaluation that is

integrated with environmental criteria. They will get a good

performance appraisal when they can handle ecological problems

satisfactorily that can improve the organization’s environmental

performance (Siyambalapitiya et al., 2018). Then, employees can

improve the environment through good environmental management

practices by using negative reinforcement such as criticism and


warning, and suspension (Renwick et al., 2013). Finally, green

reward, when the organization provides support to employees by

giving them clear guidance on environmental actions; this will direct

employee involvement in these environmental activities. Research by

Anwar et al. (2020) found evidence that employees are more

motivated by environmental initiatives when they are offered

rewards for doing so.

Overall, green HRM functions to accommodate both

individual and organizational objectives. Outcomes at the individual

level are involvement, commitment, engagement, and employee

retention. At the organization level, it contributes to economic and

financial reputation, and also its attractiveness (Cham and García-

Blandón, 2019). The relevance of green HRM is important and

cannot be ignored. Policymakers and top managers must approach it

holistically and commit to making this practice work efficiently for

progress of humanity and nature (Yong et al., 2019). The green HRM

function must continue to support one another so that green HRM

practices can help organizations succeed in economic and ecological

fields by implementing sustainable green HRM practices

(Siyambalapitiya et al., 2018). Considering the significant effect of

dimensions of green HRM, strategies must be developed for

facilitating successful green HRM practice. Yong et al. (2019)

suggested that top management must implement green HRM

practices based on contextual situations. Implementation of green

HRM must be flexible concerning contextual factors such as

organizational size and functional and operational roles. Thus,

organizations need an approach enabling them to tackle unexpected

issues in environmental responsibility.

4. GREEN HUMAN RESOURCE MANAGEMENT AND

ENVIRONMENTAL PERFORMANCE

Nowadays, many organizations put significant pressure on the

environment. It is time for organizations to transition and go green

and set the target on reducing negative impact on the environment.

Some researchers provide suggestions for improving the relationship

between green HRM and environmental performance. For the

success of green transition, human resource or employees are

strategic resources as a key in achieving environmental targets

(Siyambalapitiya et al., 2018). As stated by Russo and Fouts (1997),

environmental performance requires fundamental changes in human

resources. It demands organizational ability to manage human


resource appropriately. Thus, it is not surprising when several studies

indicated that green HRM drives organizations to superior

environmental performance. Content of green HRM plays an

important role in improving organizational environmental objectives.

This process anticipates and provides for the movement of people

into, inside and outside the organization in achieving organizational

environmental performance targets (Siyambalapitiya et al., 2018).

Many studies have proven that green HRM is very important

in determining the success of environmental performance (e.g.,

Paillé, Patrick and Renwick, 2020; Pham and Paillé, 2019; Harvey et

al., 2013; Paillé et al., 2013; Chiou et al., 2011; Daily et al. 2007).

Each dimension or function of green HRM has advantages to

improve environmental performance. Thus, functions of HRM go

hand in hand in improving organizational environmental

performance (Siyambalapitiya et al., 2018).

This study found a lack of research examining the impact of

green HRM on environmental performance in developing countries.

However, existing studies show that practice of green HRM has a

positive impact on organizational environmental performance in

these countries. Yusoff et al. (2018) revealed that green HRM

enhances environmental performance of the hotel industry in

Malaysia. Practice of green HRM by implementing elements or key

factors (i.e., green recruitment and selection, green training and

development, green performance appraisal, and green compensation)

improves the organization’s environmental performance. With

intense competition, organizations need to change direction and

reconfigure strategically for success in applying environmental

performance by embracing green human resource management.

Further, Siyambalapitiya et al. (2018) conducted a study on the

tourism industry (hotels) in Sri Lanka. The study also revealed the

relationship between dimension of green HRM practice and

environmental performance through green recruitment, green

selection, green training and development, green compensation and

rewards, green performance evaluation, green relations and

collective bargaining, green grievances handling.

Similarly, Anwar et al. (2020) found that practice of green

HRM can positively influence environmental performance of

universities in Malaysia by implementing green competence building

practices, green motivation enhancing practices, and green employee

involvement practice. Zaid et al. (2018) found evidence that green

HRM practices i.e. green hiring, green training and involvement and

green performance management and compensation have a positive


effect on the sustainable environmental performance of

manufacturing companies in Palestine. Pham et al. (2020) revealed

that green HRM has an important role in environmental performance

of hotels in Vietnam. Another study by Kim et al. (2019) also found

that green HRM has a positive impact on environmental

performance of hotels in Thailand. Implementing practice of green

HRM such as training and employee involvement will enhance

employee comitment to environmental performance. Mousa and

Othman (2020) in Palestine Healthcare found that green HRM has a

significant effect on the sustainable performance of environment by

applying practice for green hiring, green training and involvement,

and green performance management and compensation.

Implementing specific strategy of green HRM to enhance

environmental performance is done by applying environmental

training and educational programs that focus on boosting employees

to be proud as a part of a green organization, thereby increasing their

commitment and enabling them to engage in eco-friendly behavior.

Further, the organization can also consider providing employee

participation in environmentally friendly practices through non-

monetary awards.

Generally, the researchers emphasize the magnitude impact

of green training as a function of green HRM in improving

environmental performance. Siyambalapitiya et al. (2018) and

Yusoff et al. (2018) found that green training and development is the

most important function of green HRM. A recent study by Paillé et

al. (2020) revealed that training is the best green practice in HRM

because it can predict environmental performance. In addition,

organization support for the environment only increases the effect on

individual environmental performance when employees are highly

satisfied with their engagement in the environment.

In practice, to boost the practice for establishing employee

green motivation, all relevant departments are required to increase

their engagement in and responsibility for the environment.

Therefore, comprehensive employee participation in green training

and green employee involvement is needed simultaneously in

successful environmental management. The training program will

assist employees in effectively solving environmental problems in

the organization. This training program provides an understanding of

why and how to reduce, replace, or recycle waste to strengthen

environmental performance. This performance will increase rapidly

when opportunities are created for employees to utilize their


knowledge of the environment, their skills, and awareness of the

environment in their daily activities (Pham et al., 2020).

In contrast, some unusual research findings emerged. Recent

study by Mousa and Othman (2020) proved that in managing green

performance, compensation had the lowest implementation among

other dimensions of green HRM. The finding identified that

compensation is not widely applied in supporting a pro-environment

employee culture. Organizations focus more on aspects related to

production and service. The aspect of reward or appreciation is not

widely used for promoting environmental behavior. The insufficient

utilization of reward or compensation was because the staff

members are supported by various reasons that have no relationship

with environmental objectives. Therefore, it is important for

organization to implement green HRM on environmental

performance by considering both employee and organization interest.

Comprehensive studies are needed on how green HRM through

practice of HRM can influence environmental performance.

5. METHODOLOGY

This article focused on the impact of green HRM and environmental

performance in developing countries. Specifically, this article

concentrates on relevant research or study reports that come from

these countries. The study was conducted by using a narrative

literature review with the aim to build theory by referring to a

comprehensive narrative synthesis (Green, Johnson and Adams

2006). This study has found evidence based on the result of review

that green HRM has a positive impact on organizational

environmental performance in developing countries. Also, it was

revealed that green HRM can be adopted in supporting

organizational environmental performance through green recruitment

and green selection, green training, green performance, and green

rewards. Also, it was revealed that green recruitment and green

selection, green training, green performance, and green reward are

key elements of green HRM that support organiztion in enhancing

environemental performance.

6. CONCLUSION AND IMPLICATION

Green HRM is the main practice to be prioritized in an organizations.

Many studies reveal that green HRM practice benefits environmental

performance. For success in achieving environmental performance,


green HRM must be performed appropriately. This article has

reviewed findings from studies on approaches applied by

organizations to achieve environmental performance through green

HRM practices. Based on the result of review, this article suggests

organizations establish the concept of green HRM by applying an

approach through elements such as green recruitment, green

training, green performance, and green reward in tackling

environmental issues. Practice of green HRM through these

components support each other systematically in accelerating

achievement of environmental performance. These elements have a

profound effect on successful organizational environmental

performance.

This study provides significant knowledge for scholars and

practitioners in exploring the impact of green HRM practice toward

environmental performance in developing countries. This study

guides to the essential practice of green HRM so that the antecedents,

outcomes, and obstacles arising from activities of green HRM can be

identified to anticipate unexpected issues of environmental

performance. The most important aspects to consider are the

functions of green HRM. For the best outcome, these functions have

to accommodate the interest of individuals and organization factors

(i.e., organizational size, function, and operational roles).

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